luxury spending leads Michael Kors profit

  The company created and owned by fashion designer Michael Kors, has grown at a rapid pace since its IPO in 2011, underlines the appetite for buyers of luxury goods, even in a difficult economic environment.

The Michael Kors brand, which was launched as a house of luxury sportswear 30 years ago, is known for its pyramid occupied Saffiano leather handbags, watches and clothes that have worn by Michelle Obama and famous celebrities such as Jennifer Lopez.

"Considering how strong our brand reach in the market as it resonates with European consumers ... we conclude that the growth potential of retail store more than a hundred places that we must first be established (in Europe)" , said CEO John Idol said during a conference call.

Sales in Europe, where it plans to increase its number of stores 40-84 years, increased by about 97 percent to $ 73.1 million in the fourth quarter.

Sales in North America, the United States and Canada, which are more than three quarters of total sales by 52 percent to $ 516.9 million. Kors is planning to open 50 stores in the region.

"Opportunities for geographic and product-related enhancements are, in our opinion. We are believers that Michael Kors will be an important pan-European brand," Citibank analyst Oliver Chen wrote in a note.

Kors joins other luxury and upscale retailers such as Tiffany & Co (TIF.N), Saks Inc. (SKS.N) and Coach Inc. (COH.N) Burberry Group Plc (BRBY.L) and Italian fashion Giorgio home Armani reports strong sales of luxury goods.

The luxury market in the U.S. has improved, thanks to an increase in trust between rich and spend recovered asset prices, since its collapse after the financial crisis of 2008.

Men also spend more money on luxury goods, the promotion of luxury brands to increase investment.

Kors, who won an increase in visitor numbers as he continues his premises existing large stores "shop-in-shops," stated its intention to extend such concessions in the men's sports and leather companies.

The company, which has market share from larger rival coach, reported a 57 percent jump in sales in the fourth quarter.

The coach himself at the beginning of this year, the extension in the apparel and footwear industry after demand for its upscale handbags was a "lifestyle brand" again.

Kors said that net profit more than doubled in the fourth quarter to $ 101.1 million, or 50 cents per share, compared to $ 43.6 million, or 22 cents per share last year. Revenue rose to $ 597.2 million.

Net sales rose 59 percent to $ 577.4 million compared to $ 548.2 million average analyst estimate expectation, according to Thomson Reuters I / B / E / S

Analysts had expected the company to earn 39 cents per share.

The company reduced and less-selling products at higher margins in the third quarter, increased margins. The gross margin increased to 59.7 percent from 57.7 percent a year earlier.

Kors shares rose as much as 4 percent to $ 64.29, before he again easily traded in $ 62.85 in late morning on the New York Stock Exchange.